The Price of a Good or a Service Can Be

question 103

Multiple Choice

The price of a good or a service can be determined by free interaction of demand and supply or by a government price regulation.One important difference between these two price-determining methods is

• A)there are no shortages or surpluses at the free-market equilibrium price.
• B)regulated prices are fairer since more people can then afford the goods or services.
• C)that a regulated price above the equilibrium price will always result in shortages.
• D)the government is in the best position to know the needs of the people.
• E)one is capitalist and the other is communist.

---

Definitions:

Profit

The positive difference obtained when expenses are subtracted from revenue.

Used-Car Dealer

A business that specializes in selling pre-owned vehicles to consumers, often offering financing and trade-in services.

Pension

A type of retirement plan where an employee receives compensation from an employer after retirement.

Salaries

Regular payments made by an employer to an employee, usually monthly or biannually, for their services.